Chartered Secretaries Malaysia (MAICSA)

Updated: 24 Nov 2020

Tax Agent License

Tax Agent

Definition of a Tax Agent - Section 153(3) of the Income Tax Act 1967 (ITA):

any professional accountant approved by the Minister; or
any other person approved by the Minister on the recommendation of the Director General of Inland Revenue Board (IRB).

Responsibilities:

Advising on records to be maintained,

Assisting in completing tax returns;
Impress upon the clients on their obligation to pay their dues as required under the law;
Attendance at Field Audit at clients' premises;
Attendance at investigation, interviews, negotiations and proceedings; and
Filing of appeals and attendance at negotiation hearings and further appeals.

Expectation

Conversant with the everyday tax compliance requirements e.g.:

submission of estimates
payment of taxes
submission of returns
appeal procedures
expediting audit and investigation processes

Obtaining a Tax Agent's Licence

Eligibility

1.1	MAICSA members with 5 years practical experience in taxation works after admission as MAICSA members, either in the public or private sector (Section 153(3)(c) of the ITA) (Lampiran A);
1.2	Attended the most recent Annual Budget seminar organised by IRB or CTIM or MATA; and
1.3	Acquired 40 CPE/CPD within the preceding one year (Lampiran B).

New Tax Agent Application Procedure

2.1

On-line application via Malaysian Governance Tax Management and Information System at https://mycukai.treasury.gov.my accompanied with:

2.1.1	photo;
2.1.2	copies of academic qualification certificate/professional (colored scan);
2.1.3	copies of certificate of attendance at tax seminar(s) (colored scan);
2.1.4	letter of confirmation from employer on years of experience in taxation works;
2.1.5	clients listing of at least 20 clients handled in the preceding one year;
2.1.6	processing fee of RM200, online payment via FPX or credit card or manual payment in the form of postal order or bank draft made payable to "AKAUNTAN NEGARA MALAYSIA" and post to: Ketua Setiausaha Perbendaharaan Perbendaharaan Malaysia Bahagian Analisa Cukai Tingkat 7 Blok Tengah Kompleks Kementerian Kewangan Malaysia Presint 2, 62592 Putrajaya. (Tel: +603-8882 4081)

2.2

Only eligible applicants will be called for interview by IRB.

2.3

Applicant who failed in the first interview may appeal to the Ministry of Finance (MOF) within 6 months from the date of rejection for a second interview by IRB and MOF.

2.4

Unsuccessful applicant who appeal was rejected or failed in the second interview, can reapply after lapsed of 6 months from the date of rejection.

2.5

Tax Agent license is valid for 3 years and must be renewed within 4 months prior to expiration.

Tax Agent Renewal Application

3.1

Renewal Conditions

3.1.1	Attended the most recent Annual Budget seminar organised by IRB or CTIM or MATA; and
3.1.2	Acquired 90 CPE/ CPD within the preceding 3 years. Exemption of 45 CPE/CPD for renewal of tax agent license aged 60 years and above. (Lampiran B)

3.2

Renewal Application Procedures

3.2.1

On-line application via Malaysian Governance Tax Management and Information System at https://mycukai.treasury.gov.my accompanied with:

3.2.1.1	photo;
3.2.1.2	copies of certificate of attendance at tax seminar(s) (colored scan);
3.2.1.3	clients listing of at least 30 clients handled in the preceding 3 years;
3.2.1.4	processing fee of RM200, online payment via FPX or credit card or manual payment in the form of postal order or bankdraft made payable to "AKAUNTAN NEGARA MALAYSIA" and post to: Ketua Setiausaha Perbendaharaan Perbendaharaan Malaysia Bahagian Analisa Cukai Tingkat 7 Blok Tengah Kompleks Kementerian Kewangan Malaysia Presint 2 62592 Putrajaya. (Tel: +603-8882 4081)

3.2.2

the application must be submitted within 4 months prior to license expiration date; and

3.2.3

delay in submitting a renewal application within the stipulated time will render such approval being discontinued one day after the expiry date. License which has expired more than one year will not eligible for renewal and applicant must submit a new application and subject to the above conditions (1) and (2).

General

4.1	Tax agents approved under Section 153 (3) (c) of the ITA shall quote the approval number indicating the date of such approval on all correspondence with IRB.
4.2	He shall inform the IRB when he ceases to be the tax agent of a client. Letters and income tax forms addressed to taxpayers who are no longer his clients shall be returned with an appropriate notation.
4.3	A tax agent's own tax affairs shall be kept up-to-date. All income tax forms, accounts etc. ought to be timeously lodged and tax payable be settled within the time allowed.

Tax Agent’s Code of Conduct

In discharging his duties, a tax agent shall always adhere to the following:

Integrity

1.1	An agent shall be well mannered, honest, sincere and truthful in his work and always give full cooperation when dealing with the IRB. In handling the case of his client, he shall furnish only information which, to the best of his knowledge and belief, is correct.
1.2	He shall refrain from using information acquired in the course of his work for his own advantage or that of his family. Such information is classified material and shall be dealt with as confidential. It shall not be disclosed to any other party without specific authority. “*Classified material” means returns/documents/ information that is acquired by a classified person as defined in Section 138(5), Income Tax Act 1967. A “Classified person*” means any person or his employee who has access to classified material when representing a client in taxation matters.
1.3	He shall accurately inform/advise his client on the progress of his case.
1.4	He shall not misuse any monies entrusted by his client for purposes of payment of tax. Proof of payment of tax shall be given to his client for purposes of record.
1.5	He shall not enter into any arrangement with an unqualified person to endorse the work of that unqualified person.

Competency

2.1	He shall always strive for professional competency and exhibit a high degree of skill in discharging his duties. A tax agent must therefore be conversant with the tax laws/practices and constantly ensure that his technical knowledge is up-to-date. In addition he is also expected to keep abreast with the requirements of the IRB, which may be announced from time to time.
2.2	Staff members of a tax agent must also be well trained in relevant aspects of tax laws and regulations so as to ensure that work performed by them also meet the required standard.
2.3	He shall to the best of his ability, ensure that all returns and tax computations submitted are properly completed with the required supporting statements and schedules, and such submissions are in compliance with the guidelines issued by the IRB.
2.4	He shall only undertake cases that are within his experience and capability. This is to avoid any sub-standard work being performed and undue delay in the finalisation of the cases.
2.5	When making appeals against any assessment, proper care shall be taken to ensure that such appeals are based on valid grounds.
2.6	He is expected to give prompt and complete replies to enquiries from the IRB.

Professional Advice

3.1	In giving professional advice to his clients, the tax agent shall always have regard to the prevailing tax laws.
3.2	He shall impress upon his clients the various obligations and duties as taxpayers under the tax laws and educate the clients on the importance of maintaining proper records of all transactions especially in business cases.
3.3	He shall also advise his clients of the necessity to make sufficient provisions for payment of tax as well as the importance of keeping to the instalment plans for payment of tax so as to avoid late payment penalties.

*Compliance with this code of ethics will be used as one of the criteria for approving and renewing the licence of the tax agent.